Google TPU Sales Forecast Soars to $104BN by 2028
Piper Sandler analyst Thomas Champion has released a revised forecast for Google's TPU hardware revenue, predicting it will hit $104 billion by 2028. This estimate is significantly higher than the current market consensus and has led to an increase in Alphabet's (GOOGL) Cloud revenue estimates for 2027 and 2028.
The analyst believes that the market has underestimated the growth potential of TPU sales, which will drive a substantial increase in Google's Cloud revenue. According to Piper Sandler, GOOGL reported external hardware sales for the first time in its second-quarter 2026 earnings report, prompting a reassessment of the revenue opportunity.
The forecast is based on a facilities and power-capacity framework, which assumes a steep ramp-up in TPU sales. Champion estimates that TPU sales will reach $8 billion in 2026, climbing to $51 billion in 2027, and reaching $104 billion in 2028.